Lennar (LEN.US), one of the largest US residential developers, reported its financial results for the fourth fiscal quarter of 2025, which slightly disappointed investors. Despite maintaining high sales volumes, the company's financial results were weaker than the consensus, and the outlook for the coming quarter suggests a further slowdown in earnings growth.
In the fourth quarter, Lennar achieved adjusted earnings per share (EPS) of $2.03, which was significantly below both the previous year's figure ($4.06) and market forecasts ($2.24). Revenue was $9.37 billion, down 5.8% year-on-year, although slightly exceeding analysts' expectations. The gross margin on home sales declined to 17% from 22.1% a year earlier. The average home sale price was $386,000.
The outlook for the first quarter of 2026 is even more conservative: the company forecasts new orders of 18,000-19,000 (nearly 20,300 were expected) and a gross margin of 15-16% (16.9% was expected), all below market expectations. Analysts (including Citi, Barclays, and RBC) emphasize that the weak results and weaker-than-expected outlook confirm pressure on housing demand, growing competition from the secondary market, and the lack of rapid stabilization of margins, which translated into declines in Lennar's share price before the opening of today's session.
The company's shares are trading below Wednesday's opening price, in the zone of recent lows from November 18. As long as the company's shares remain below the 100-day exponential moving average (purple curve on the chart), the technical downtrend is likely to continue. Source: xStation
Oil price spike boosts FTSE 100, as CPI cements rate cut expectations for BOE
DE40: Many informations, few movements
From Euphoria to Correction: CoreWeave and the Future of AI Infrastructure
Market focus shifts to CPI, while Brent crude slips below $60
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
